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Judgment Enforcement: Garnishment, Seizure, and Liens
Faculty of LawDebt Collections and Creditor Rights
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A general contractor's failure to pay a $127,000 invoice for electrical work has placed a small electrical subcontracting firm in a precarious position that now involves multiple intersecting enforcement proceedings. The subcontractor, a sole proprietorship operating in southern Alberta for 11 years, completed rough-in and finish electrical work on a 24-unit residential condominium project over a 7-month period ending in March. The general contractor, a mid-sized construction company with ongoing projects across the region, accepted the work without reservation but did not remit payment within the 45-day terms specified in the subcontract. By June, informal collection efforts had failed, and by September, the subcontractor had obtained a default judgment in the Court of King's Bench for the full invoice amount plus prejudgment interest.

The judgment, however, has produced no payment. The general contractor continues to operate, with work crews visible on at least 3 active construction sites and a fleet of vehicles bearing company signage, yet claims through counsel that current cash flow does not permit satisfaction of the debt. The subcontractor's principal has begun investigating enforcement options and has learned that the general contractor maintains commercial banking accounts, holds receivables from project owners on ongoing work, and owns construction equipment including excavators, a crane truck, and various specialized tools. The question of which assets can be reached, through what mechanisms, and in what priority has become urgent.

Complicating the situation, the subcontractor is not only a creditor but also a debtor. A building materials supplier that provided electrical panels, wiring, and fixtures for the condominium project—materials totalling $38,500—obtained its own judgment against the subcontractor in July after the subcontractor fell behind on payment during the period when the general contractor's invoice remained outstanding. That supplier has now served a garnishment summons on the subcontractor's bank, and the subcontractor has received notice that a civil enforcement agency is preparing to execute a writ of seizure and sale against business assets. The subcontractor's business account contained approximately $14,200 at the time the garnishment summons was served, and the firm's assets include 2 work vehicles, specialized testing equipment, and inventory stored at a rented warehouse.

The subcontractor must now navigate the enforcement system from both directions simultaneously—pursuing collection remedies against the general contractor while responding to enforcement actions initiated by the materials supplier. Both matters raise questions about what can be garnished, what can be seized, what exemptions may apply, and whether the subcontractor can still register and enforce a builders lien against the condominium project to secure its claim before relevant limitation periods expire.

Enforcing a Judgment: The Tools Available and How They Work

When a court enters judgment in favour of a creditor, that judicial determination represents only the beginning of what can become a lengthy and complex process. The judgment itself is a declaration that one party owes another a specific sum of money, but it does not automatically transfer funds from the debtor's bank account to the creditor's hands. The gap between obtaining a judgment and actually receiving payment is where the law of judgment enforcement operates, providing creditors with a toolkit of legal mechanisms designed to compel payment from unwilling or unable debtors. For Canadian business owners, sole proprietors, and non-profit operators, understanding these enforcement tools is essential regardless of which side of a collection matter you may find yourself on. You may be pursuing an outstanding invoice that has ballooned into a formal legal dispute, or you may be facing enforcement action from a creditor seeking to collect on a debt your organization owes. In either circumstance, the rules governing garnishment, seizure, and liens will shape your options, your risks, and your strategic decisions.

The legal foundation for judgment enforcement in Canada rests on a combination of provincial and territorial legislation, federal statutes governing specific types of property and obligations, and procedural rules established by each court system. In common law provinces such as British Columbia, Alberta, Saskatchewan, Ontario, and the Atlantic provinces, judgment enforcement operates through a framework of legislation that authorizes specific collection mechanisms and sets out the procedures creditors must follow to use them. British Columbia's Court Order Enforcement Act, as of the date of authorship, establishes the framework for garnishment, seizure, and registration of judgments in that province. Alberta's Civil Enforcement Act, as of the date of authorship, provides a comprehensive statutory scheme that consolidates enforcement remedies and creates the civil enforcement agency system. Saskatchewan's Enforcement of Money Judgments Act, as of the date of authorship, modernized that province's approach to judgment enforcement. Ontario's Creditors' Relief Act and Execution Act, as of the date of authorship, work together with the rules of civil procedure to govern how judgments are enforced in that province. Quebec operates under an entirely different conceptual framework, with the Civil Code of Quebec and the Code of Civil Procedure establishing rules for execution of judgments that reflect civil law principles rather than common law traditions, including a distinct approach to the seizure of property and the garnishment of wages that emphasizes different procedural requirements and debtor protections.

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